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Insurance Law Reform Intentions Announced

Minister's announcement can be found at this link: https://www.beehive.govt.nz/release/insurance-contracts-become-easier-understand-and-fairer-consumers

Changes the Government has agreed on include:

  • Placing the responsibility on insurers to ask consumers the right questions when processing new insurance policies, rather than leaving it to consumers to know what to tell their insurer
  • Requiring insurance policies to be written and presented clearly, so that consumers can easily understand them
  • Ensuring insurers respond proportionately when consumers don’t disclose something they should have, or misrepresent themselves
  • Strengthening protections for consumers against unfair terms in insurance contracts
  • Extending powers to the Financial Markets Authority to monitor and enforce compliance with new requirements

Most of this is uncontroversial in concept. Much of it is recognition of current practice. But the challenge, as always, is in the details. There is broad potential to get bad law from good ideas. That is why it is particularly good to hear that there will be more consultation than it was suggested at one stage. 

MBIE's page with a lot more detail is at this link: https://www.mbie.govt.nz/business-and-employment/business/financial-markets-regulation/insurance-contract-law-review/ 

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